DFS launches US$1.5 billion Bharat Maritime Insurance Pool backed by ₹12,980-crore sovereign guarantee
On 12 May 2026 the Department of Financial Services launched the US$1.5 billion Bharat Maritime Insurance Pool, with a sovereign guarantee of US$1.4 billion (₹12,980 crore), to keep maritime insurance available amid Middle East tensions.
Summary
The Department of Financial Services launched the Bharat Maritime Insurance Pool (BMIP), a domestic insurance pool of US$1.5 billion with a sovereign guarantee of US$1.4 billion (₹12,980 crore), on 12 May 2026. The pool covers hull and machinery, cargo, protection and indemnity (P&I) and war risks for Indian-flagged or controlled vessels and ships sailing to or from India, against the backdrop of Middle East tensions. It aims to reduce dependence on foreign reinsurers, who can withdraw cover under sanctions, and on International Group P&I clubs. GIC Re is the pool administrator and domestic insurers issue policies; DFS Secretary M. Nagaraju handed over the first Marine Hull & Machinery War Policy, issued by New India Assurance.
Key facts
- Launched
- 12 May 2026, Department of Financial Services
- Size
- US$1.5 billion pool; sovereign guarantee US$1.4 billion (₹12,980 crore)
- Covers
- Hull & machinery, cargo, P&I, war risk
- Administrator
- GIC Re; policies by domestic member insurers
- First policy
- Marine Hull & Machinery War Policy by New India Assurance
Practice MCQs 2 questions
What is the size of the Bharat Maritime Insurance Pool launched by the Department of Financial Services in May 2026?
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Correct answer: B — US$1.5 billion
BMIP is a US$1.5 billion pool with a sovereign guarantee of US$1.4 billion (₹12,980 crore).
Which entity is the pool administrator of the Bharat Maritime Insurance Pool?
Show answer
Correct answer: D — GIC Re
GIC Re is the pool administrator; policies are issued by domestic member insurers such as New India Assurance.